Business setup in Dubai
Setting up a business in Dubai starts with one decision: where the company is licensed. A mainland company is licensed by the Dubai Department of Economy and Tourism (DET) and can trade across the UAE, with up to 100% foreign ownership for most activities. A free zone company is licensed by its free zone authority and suits export, services and holding activity. An offshore company is registered rather than licensed and cannot trade inside the UAE. THAJ, a licensed Dubai corporate services provider (DET licence 1651703), chooses the structure against your activity and files it for you.
Mainland, free zone or offshore?
The right structure depends on where your customers are and what the company does — not on which is quickest to register.
| Mainland (DET) | Free zone | Offshore | |
|---|---|---|---|
| Issued by | Dubai Department of Economy and Tourism | The free zone authority (for example DMCC, Jafza or DAFZ) | A registrar such as Jafza — a certificate of incorporation, not a trade licence |
| Trade inside the UAE | Yes, across the UAE | Inside the zone and abroad; mainland sales through a distributor or a mainland licence such as DET’s dual licence | No, not without a licence from a competent authority |
| Foreign ownership | Up to 100% for most activities; strategic-impact activities need approval | 100% | 100% |
| Premises | Real business address; in Dubai the lease is registered through Ejari | Office options set by each zone | Registered office, usually through the registered agent |
| Best for | Selling to customers in the UAE | Export, services, trading hubs and holding activity | International holding, property and IP ownership |
Ownership rules, permitted activities and office requirements vary by activity, emirate and free zone. Every structure is confirmed against your specific activity before filing.
Read the detailed guides to mainland company formation, free zone company formation and offshore companies. The choice between the first two, without a package price, is mainland or free zone.
How company formation works
Activity and licence type
The activity decides the licence type and legal form. The UAE lists more than 2,000 economic activities, and one licence can hold several. See trade licence types.
Jurisdiction and legal form
Mainland, a specific free zone, or offshore — and the legal form that fits your shareholders, such as an LLC, a free zone establishment or a branch.
Trade name and initial approval
The trade name must match the activity, carry the legal form (for example LLC) and be available. On the mainland, DET’s initial approval lets you move on to premises.
Premises and constitutional documents
A real business address (in Dubai, an Ejari-registered lease for mainland companies), the memorandum of association and any approvals the activity needs.
Licence issued
The licensing authority issues the trade licence (or, offshore, the certificate of incorporation).
After the licence
Establishment card and visas, a corporate bank account, and VAT & Corporate Tax Support. Every taxable person, including free zone companies, must register with the Federal Tax Authority. THAJ connects you with licensed accounting and tax partners for that registration, return filing and bookkeeping.
Business setup guides
Trade licence types
Commercial, professional, industrial, tourism, e-Trader and dual licences. Read the guide.
Zone-by-zone pages
DMCC, Jafza, DAFZA, Dubai Silicon Oasis, Meydan, IFZA, RAKEZ, Shams and Sharjah Publishing City. Open the free zone hub.
Licence by activity
General trading, consultancy, IT, real estate brokerage, restaurants and digital marketing, plus e-commerce and freelance permits. Trade licence types.
What THAJ handles for you
- Structure and activity review before anything is filed
- Trade name, initial approval, memorandum of association and licence issue
- Establishment card, investor and employee visas — see PRO services
- Corporate bank account assistance
- VAT & Corporate Tax Support — an introduction to licensed accounting and tax partners for registration, return filing and bookkeeping
- The Golden Visa for business owners once your company meets the thresholds
Frequently asked questions
What is the difference between mainland and free zone in Dubai?
A mainland company is licensed by the Dubai Department of Economy and Tourism and can trade anywhere in the UAE. A free zone company is licensed by its free zone authority and trades inside the zone and internationally; selling on the mainland needs a distributor or a mainland licence.
Can a foreigner own 100% of a company in Dubai?
Yes, for most activities. Since the Commercial Companies Law was amended, foreign investors can fully own mainland companies, except activities with a strategic impact that need the regulator’s approval. Free zone and offshore companies can be 100% foreign-owned.
Which business setup option is cheapest?
It depends on the activity, the number of visas and the premises you need. See business setup cost for the cost blocks and the fees DET publishes.
Does a company in Dubai get me a Golden Visa?
Not by itself. The business routes require, for example, company capital of at least AED 2 million or federal taxes of at least AED 250,000 a year. See the Golden Visa for business owners.
Do I need a PRO after the company is set up?
Someone has to keep visas, the establishment card and licence renewals current. THAJ’s PRO services handle that after formation.
Official sources
Facts on this page were checked against these sources on 5 November 2026. Rules and fees can change; the authority’s current page always prevails.
- Business set-up options: mainland or free zone — Government of Dubai (dubai.ae)
- Full foreign ownership of commercial companies — The UAE Government portal (u.ae)
- Establishing business in the UAE (licence types, trade names, premises) — UAE Ministry of Economy and Tourism
- Starting a business in a free zone — The UAE Government portal (u.ae)
- How to set up an offshore company — Jebel Ali Free Zone Authority (Jafza)
- Corporate Tax in the UAE — UAE Ministry of Finance
Choose the right structure first
Tell us what the business does and where your customers are. We will set out the route.